Doubles Production Capacity to Meet Future Growth
Stored Energy Systems (SENS) of Longmont, Colorado manufactures and distributes highly reliable industrial battery chargers and DC power systems for applications and equipment that require continuous power at all times. SENS products provide the essential power its clients need in the event of black outs, poor power quality or to “peak shave” when utility-provided energy prices are high. SENS commands a majority of the market share in the engine generator set battery charger industry in North America and is one of the leading providers of chargers and DC systems to the utility and industrial control sectors. Their recent receipt of the 2009 Product of the Year Award from Consulting-Specifying Engineer is testament to SENS’ standing in the industry.
SENS’ founder started the company in 1971 in the Silicon Valley. The company moved to Longmont in 1991. In the 1990s, SENS embraced Lean to meet the challenge of customer demand for quick on-time delivery of products. Fully committed to Lean, SENS reduced lead time from over six weeks to less than one week, and decreased inventory to “radically improve service to customers and reduce cash invested in inventory,” said Doug Kaewert, COO of SENS. This commitment to Lean gave SENS the structure and capacity to expand rapidly. Throughout much of the 2000s, SENS has seen 20%+ annual growth. Lean has allowed them to maintain fast delivery and control costs through continual growth. In 2008, SENS contracted with CAMT to conduct Kaizen Events, or Rapid Improvement Blitzes, to allow them to flexibly scale their production to meet rapidly expanding customer demand. Then the economic downturn hit. SENS experienced radical and unpredictable weekly swings in the number and mix of product orders. The downturn negated the immediate need to scale up production, but the Kaizen Events proved to be a significant benefit in dealing with the unpredictable swings in volume and mix.
The Kaizen events restructured two primary product lines with the goal to increase throughput with less physical space and reduce assembly/test cycle time. The placement of materials and equipment were changed to eliminate non-value added activities and ensure rapid flow of product to customers. Stations were rearranged so that anywhere from two to six workers could work on one line, enabling SENS to scale production to the current demand of that product. This, coupled with a cross-trained workforce, is providing a highly flexible workplace that can meet unpredictable spikes in demand and changes in product mix. The level of understanding of their processes gained through the Kaizen events, in addition to the compressed size of the lines, has enabled SENS to more than double production when needed.
With CAMT’s help, SENS further reduced large charger lead times from 2.5 days to 1 day, and decreased the space needed for their product lines by 50%. Work in process (WIP) inventory was significantly reduced by more than $10,000, reducing costs. Business is now picking up and SENS is prepared. In the last quarter alone, they’ve achieved the highest production volumes in the history of the company.
“CAMT’s Kaizen events have helped SENS prepare to meet our future growth.” – Doug Kaewert, Chief Operating Officer
Results:
- Large charger Lead time reduced from 2.5 days to 1 day
- Floor space reduced by 50%
- WIP inventory reduction > $10,000
- Workforce Practices Investment -- $31,380